Couche-Tard acquires 26 stores in Tennessee
The 26 convenience stores currently operate under the BP banner, 18 of which are company-owned/operated, six company-owned/dealer operated, and two dealer-owned/operated.
28/10/05 Alimentation Couche-Tard Inc. announces that its subsidiary, Circle K Stores Inc., has signed an agreement to purchase 26 stores in the Memphis region of Tennessee from BP Products North America, Inc. Should the transaction close as expected at the end of December, these assets would add sales of approximately US$80 million to Couche-Tard's revenues and contribute to its earnings on an annualized basis.
The 26 convenience stores currently operate under the BP banner, 18 of which are company-owned/operated, six company-owned/dealer operated, and two dealer-owned/operated. All locations dispense BP branded fuel and shall remain as such. Pursuant to this transaction, the company would buy the land and buildings for 22 locations, would lease two and the other two would be owned and operated by existing dealers. According to a confidentiality agreement between the parties, the purchase price cannot be disclosed at this time but it will be paid by using internal cash flow.
Alimentation Couche-Tard Inc. is the leader in the Canadian convenience store industry. In North America, Couche-Tard is the third largest convenience store operator, the second largest independent (not integrated with a petroleum company) convenience store operator and the most profitable one within such category. Couche-Tard currently operates a network of 4,861 convenience stores, 3,035 of which include motor fuel dispensing, located in eight large geographic markets, including three in Canada and five, which cover 23 States in the United States. Additionally, the company has 4,175 Circle K licensees, primarily in Asia. Some 36,000 people are employed throughout Couche-Tard's retail convenience network and executive offices in North America.
